1990 PLP 402 (PTD)
C.I.T. CENTRAL ZONE A, KARACHI Versus Messrs ROYAL INSURANCE CO.
| Citation | 1990 PLP 402 (PTD) |
| Forum / Court | Karachi High Court |
| Bench Members | Saleem Akhtar and Wajihuddin Ahmed, JJ |
| Parties | C.I.T. CENTRAL ZONE A, KARACHI Versus Messrs ROYAL INSURANCE CO. |
Q1: What are the key laws and sections cited in 1990 PLP 402 (PTD)?
This judgment primarily cites: statutory provisions as referenced in Pakistani case law index.
Q2: Which judicial bench decided the case 1990 PLP 402 (PTD)?
The case was heard and decided by the Karachi High Court bench comprising: Saleem Akhtar and Wajihuddin Ahmed, JJ.
Q3: What is the official citation format for this judgment on Pakistan Law Portal?
Cite this legal precedent as: 1990 PLP 402 (PTD) (C.I.T. CENTRAL ZONE A, KARACHI Versus Messrs ROYAL INSURANCE CO.). Read the full summary and cross-referenced laws free on Pakistan Law Portal.
Representation
- Ali Athar for Respondent.
- Date of hearing: 22nd November, 1989.
Headnotes / Summary
Income‑tax Act (XI of 1922)‑‑‑ ‑‑‑‑S.10 (2) (xvi) & Sched. I, R.6‑‑‑ACSessee, an insurance company‑‑‑Provision for taxation or taxation reserve‑‑‑Admissibility under S.10(2)(xvi)‑‑‑Provisions of First Schedule, Income‑tax Act, 1922 completely, exhaustively and to the exclusion of every other provision not expressly incorporated, govern the computation of profits and gains of insurance business‑‑‑Provisions for taxation or taxation reserve thus are permissible expenses. Commissioner of Income‑tax (Central) Karachi v. Messrs Mercantile Fire and Central Insurance Co. Ltd. 1989 P T D 142; Commissioner of Income tax v. Phoenix Assurance Co. Ltd. I.T.R. No. 38 of 1982 and C.I.T. v. Alpha Insurance Co. Ltd. 1981 S C 293 ref. Shaikh Hyder for Applicant.
Judgment & Decree
SALEEM AKHTAR, J.‑‑The respondent is a General Insurance Company. During the relevant assessment year respondent claimed an amount by way of provision for taxation, which was allowed and maintained by the Tribunal. On an application filed by the applicant the following question has been referred:‑ "Whether, on the facts and in the circumstances of the case, the Income tax Appellate Tribunal was right in deleting the amount of add‑back claimed by the assessee‑company on account of provision for taxation or taxation reserve." Both the learned counsel have referred to Commissioner of Income‑tax Central Karachi v. Messrs Mercantile Fire and Central Insurance Co. Ltd. 1989 PTD 14% which was followed by an unreported judgment in Commissioner of Income‑tax v Phoenix Assurance Co. Ltd. ITR No. 38 of 1982 decided on 31‑10‑1989. In the case of Commissioner of Income‑tax Central Karachi v. Messrs Mercantile Fire and Central Insurance Co. Ltd. reliance was placed on C.I.T. v. Alpha Insurance Co. Ltd. PLD 1981 S.C. 293 where it was observed. "Rules contained in the First Schedule to the Income‑tax Act completely, exhaustively and to the exclusion of every other provision not expressly incorporated, govern the computation of profits and gains of insurance business." Thus the Tribunal was justified in applying Rule
6. Following the aforesaid judgments we answer the question in the affirmative. M.B.A./C‑145/K Question answered in the affirmative